Bitcoin (CRYPTO:BTC) experienced a significant drop on October 1, 2024, falling to nearly $60,000 as investors reacted to escalating geopolitical tensions in the Middle East.
According to Coinbase data via TradingView, Bitcoin's price reached approximately $60,150 in the late afternoon.
This marked a nearly 9% decline from the cryptocurrency's value of more than $66,000 just 48 hours earlier.
It was also the lowest level Bitcoin had seen since September 18.
Alongside Bitcoin, global stock markets were also affected.
The S&P 500 index dropped close to 1%, while the Dow Jones Industrial Average fell by 0.41%, according to Google Finance.
However, Brent crude futures saw an increase of 2.6%, rising above $73 per barrel, as reported by Reuters.
Analysts attributed Bitcoin's sharp decline to geopolitical instability, particularly following reports of an attack by Iran on Israel.
According to Al Jazeera, Iran launched multiple missile strikes at critical targets in Israel.
In response, Israel's prime minister, Benjamin Netanyahu, vowed retaliation, according to Reuters.
Joe DiPasquale, CEO of BitBull Capital, commented, “Concerns from investors over global instability, including in the Middle East, have shaken the risk-on markets from the S&P 500 to the Nasdaq to Bitcoin.”
Julio Moreno, head of research at CryptoQuant, echoed this sentiment, stating, "Today’s price action seems to be dominated by the situation in the Middle East."
Other analysts pointed to additional factors contributing to Bitcoin's decline.
Tim Enneking, managing partner at Psalion, suggested the drop was due to end-of-month profit-taking, options expiring, and Bitcoin being overbought.
He noted, “It’s a bit of a breather after an unexpectedly solid month.”
As global markets react to unfolding events, Bitcoin's volatility remains closely linked to both geopolitical and market-specific factors.
At press time, the Bitcoin price was $61,244.84.